Meeting Of the Standing Committee For Financial Stability Held Today

On December 20, 2011, in Sarajevo, the regular meeting of the Standing Committee for Financial Stability was held, addressing the current risks in macroeconomic environment and their influences on the stability of the financial system.

The members of Standing Committee for Financial Stability estimated that currently the highest risks are weak economic activity in the country, low growth projections for the next year, as well as unfavourable political climate in the country that is mostly caused by non-adoption of the budgetary framework and failure to form BH Council of Ministers. Related to this, it is estimated that the financial stability is still on the satisfactory level, although the growing trend of system risks is evident compared to the previous periods.

The banking sector as a whole is still well capitalized, although there are banks in which, mostly due to the deterioration of the macroeconomic conditions in the country and abroad, some needs for additional capitalization could appear in the fore coming periods. It is stressed that on January 16, 2012 the meeting on Vienna Initiative will be held and that the representatives of the Standing Committee for Financial Stability will attend it, too.

Governor of the Central Bank of Bosnia and Herzegovina, Kemal Kozarić Ph.D. chaired this meeting and BH Minister of Finance and Treasury, Dragan Vrankić Ph.D., Minister of Finance of BH Federation, Ante Krajina, Director of the Banking Agency of BH Federation, Zlatko Barš and Director of BH Deposit Insurance Agency Josip Nevjestić attended the meeting.

The main task of the Standing Committee is early recognition of potential threats in the financial system, giving recommendations for lowering of system risks, as well as coordinated action of the members in cases when certain situations, jeopardizing the state's financial stability, require it.

It is agreed that the next meeting of the Standing Committee for Financial Stability will be held by the end of January 2012.

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